2 Crore Collateral-Free Loan for SC/ST & Women Entrepreneurs

2 Crore Collateral-Free Loan for SC/ST & Women Entrepreneurs

Stand-Up India Scheme 2024 Explained

Are you an aspiring entrepreneur from the SC/ST community or a woman with a business dream?
The Government of India has doubled the loan limit under the Stand-Up India Scheme to ?2 crore, providing a powerful opportunity for small business owners to start or expand their ventures without collateral!

Let’s explore how the Stand-Up India Scheme 2024 can be the perfect launchpad for your entrepreneurial journey.

What is the Stand-Up India Scheme?

The Stand-Up India Scheme was launched by the Government of India to support SC/ST and women entrepreneurs by facilitating bank loans for greenfield enterprises in manufacturing, services, trading, and allied agricultural activities.

In 2024, the scheme received a major boost with the loan limit being increased from ?1 crore to ?2 crore, making it one of the most impactful government initiatives for first-time business owners.

Key Features of the Updated Scheme

• Loan Amount: ?10 lakh to ?2 crore
• Collateral-Free: No need to mortgage property or assets
• Guarantee Coverage: 100% guaranteed by the Credit Guarantee Fund for Stand-Up India Loans (CGFSIL)
• Target Groups: SC/ST entrepreneurs and women above the age of 18
• Purpose: Greenfield projects in manufacturing, service, or trading sector
• Repayment Period: Up to 7 years (with moratorium)
• Working Capital: Up to ?10 lakh can be sanctioned through overdraft facility

Who Can Apply?

To be eligible for the Stand-Up India Scheme:

• The applicant must be SC/ST or a woman entrepreneur
• The minimum age should be 18 years
• The enterprise should be a greenfield project (first-time venture)
• The applicant must not be a defaulter to any bank or financial institution
• The borrower should hold at least 51% stake in the business

Eligible Businesses

• The scheme is designed for greenfield ventures in:
• Food Processing Units
• Manufacturing Enterprises
• Service-Based Startups
• Retail & Wholesale Trading
• Agri-Allied Businesses like dairy, poultry, and fisheries

Documents Required

• Identity Proof (Aadhar, PAN)
• Caste Certificate (for SC/ST applicants)
• Business Plan or Project Report
• Proof of Address
• Bank Account Statement (6 months)
• Quotation or proforma invoice for equipment/machinery
• Ownership proof of the enterprise (if available)

Benefits of the Scheme

• No collateral = low barrier to entry
• 100% government-backed = bank confidence
• Financial inclusion of underrepresented communities
• Encourages first-time entrepreneurship
• Supports employment generation

Real-Life Example

Sunita, a 29-year-old woman from Lucknow, wanted to start a packaging material manufacturing unit. She applied under the Stand-Up India Scheme and received a ?1.75 crore loan, with no collateral and 7-year repayment term. Her business now employs over 40 people and supplies to FMCG companies.

FAQs 

Q1. Can I apply for the loan online?
Yes, you can apply through the official portal: www.standupmitra.in or approach your nearest bank branch.

Q2. What if I already own a business?
The scheme is for greenfield projects only. So, it must be your first-time venture in the selected category.

Q3. Do I need a co-applicant?
Only if you’re applying jointly, otherwise it's not mandatory. However, partnership firms are allowed if the SC/ST or woman owns 51%+ of the shareholding.

Q4. Can this loan be combined with subsidies?
Yes, you may combine it with state-level subsidies, PMEGP, or other schemes if eligible.

Q5. Is there any processing fee?
Banks may charge a nominal processing fee as per their internal policy, but many public sector banks waive this for government schemes.

Final Thoughts

The Stand-Up India Scheme 2024 is not just a loan – it’s a movement towards empowerment and financial independence. If you're from the SC/ST category or a woman with a business idea, this is the right time to act.

Need help preparing your project report or applying?
???? Contact Us at FinanceSeva
???? Call: 9863-02-02-02